The S&P 500 was up just 25 bps. The index traded as high as 4,070 yesterday, which was a resistance level that held all day, and traded as low as 3,955.
It felt like a like consolidation ahead of the CPI report today. I think there is a good chance we retrace to that 3,955 level at some point Wednesday; liquidity has been thin and the sharp vertical Intraday rise appeared to be an unstable pattern.
However, an increase above 4,070 will likely lead to a gap fill at 4,160, I think.
Real Yields
What did make a new low was the iShares TIPS Bond ETF (NYSE:TIP) dropping to $117.19. Real yields continued to rise and typically when the TIP ETF is making new lows, the Invesco QQQ Trust (NASDAQ:QQQ) ETF isn’t too far behind.
Chipotle
The chart on Chipotle Mexican Grill (NYSE:CMG) looks extremely weak, with the shares sitting above support around $1,290. But once support at $1,290 fades away, there is nothing until the $1,180’s, and the RSI has a very negative trend bias.
So I think a break of that support at $1,290 would be a warning sign of lower prices.
Roblox
Roblox (NYSE:RBLX) reported results, and they missed estimates on earnings and barely missed on bookings, while daily active users came in-line.
At least at first glance, they didn’t seem disastrous. Given how much the stock has fallen, one would have thought that DAU’s would have been cut in half.
The call today should clarify a few things, I hope. The chart doesn’t look horrible, actually, with a bullish divergence on the RSI versus the falling price. If the stock can hold these lows, that is a big positive, at least I hope.
